BEIJING: Following a meeting of lawmakers considering the prospect of heightened trade tensions with US President-elect Donald Trump, China on Friday presented some of its most ambitious goals in years to strengthen its economy and reduce local government debt.
Beijing claims that China’s local governments are now dealing with a $5.6 trillion debt load, which raises concerns for the health of the country’s economy as a whole.
The amount was estimated by the International Monetary Fund (IMF) to be $8.4 trillion last year.
The decision to swap their hidden debts, which are defined as loans for which a government is responsible but which are not revealed to its citizens or other creditors, was made by policymakers assembled in Beijing this week.
